S&P affirms Global Crossing

Standard & Poor's said it affirmed its B- long-term corporate credit rating on Global Crossing (U.K.) Telecommunications Ltd. following a review of the company's performance and trading prospects.

The outlook is stable.

At the same time, S&P said it affirmed its B- senior secured debt rating on the $200 million and £157 million notes issued by related entity Global Crossing (U.K.) Finance plc.

The recovery rating of 4 was also affirmed, indicating the agency's expectation of average recovery for senior secured noteholders in the event of a payment default.

According to S&P, the ratings are constrained by Global Crossing's high leverage and aggressive financial policy. A substantial portion of the cash generated by the company is upstreamed in the form of dividends and/or loans to its 100% owner, Global Crossing Ltd., which has lower credit quality than that of Global Crossing.

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